MPERC issues draft amendment for revised RPO structure and compliance process

The Madhya Pradesh Electricity Regulatory Commission has issued a draft notification proposing the Fifth Amendment to the MPERC (Cogeneration and Generation of Electricity from Renewable Sources of Energy) Regulations, 2021. The amendment primarily revises the Renewable Purchase Obligations of distribution licensees, open access consumers, and captive users to align the state framework with national Renewable Consumption Obligation norms issued under the Energy Conservation Act, 2001.

Amendment driven by new national policy framework
The draft follows the Ministry of Power notification of 27 September 2025, which prescribes minimum renewable consumption levels for designated consumers and clarifies that such consumers will not be subject to separate state RPO requirements. With this change, the Renewable Consumption Obligation trajectory prescribed by the Ministry subsumes state-level RPO targets issued under the Electricity Act, 2003. The amendment seeks to bring Madhya Pradesh’s regulations in line with this structure, consistent with Section 86(1)(e) of the Electricity Act and the Tariff Policy, 2016.

Revised RPO trajectory and category structure
The amendment replaces Regulation 3.1 of the principal regulations with a new target table. Total Renewable Purchase Obligations begin at 29.91% in 2024–25 and rise to 43.33% by 2029–30. The RPO is divided into four components: wind, hydro, distributed renewable energy, and other renewable energy. Wind and hydro obligations must be fulfilled only from projects commissioned after 31 March 2024. Distributed renewable energy has a special provision where shortfalls cannot be compensated through other categories, but any overachievement can be used to offset deficits in other components.

Obligated entities will be allowed to comply through renewable electricity consumption, renewable energy certificates, self-generation, or payment of buyout charges determined by the Central Electricity Regulatory Commission. The amendment also introduces new definitions, including Bureau of Energy Efficiency, Adjudicating Officer, and Distributed Renewable Energy, while deleting some earlier compliance and definitional provisions from the 2021 regulations.

BEE to oversee monitoring and compliance
A major structural change in the draft is the revised monitoring and enforcement mechanism. The Bureau of Energy Efficiency will now be responsible for monitoring compliance and submitting periodic reports to the Commission. Obligated entities must upload certified consumption and compliance data to the BEE online platform, certified by a Bureau-accredited energy auditor. Non-compliance, delayed submissions, or incorrect reporting may lead to penalties imposed by an Adjudicating Officer under the Energy Conservation Act.

Entities must submit certified energy accounts by 31 July each year and final compliance reports after settling shortfalls. For FY 2024–25, the deadline is 31 March 2026. For subsequent years, the deadline is 31 December. The draft amendment is expected to undergo stakeholder consultation before being finalized.

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